India, New Zealand Begin Second Round Of FTA Negotiations

(MENAFN- KNN India) New Delhi, July 15 (KNN) India and New Zealand on Monday began the second round of negotiations for a proposed Free Trade Agreement (FTA), with talks set to continue until July 25, according to Financial Express.

This follows the first round of talks held in early May, after both countries agreed to re-launch FTA discussions during New Zealand Prime Minister Christopher Luxon's visit to New Delhi in March.

This marks the second attempt by the two nations to formalise a trade pact, with the earlier negotiations spanning from 2010 to 2015, during which ten rounds of talks were held without a final agreement.

The renewed efforts aim to significantly scale up bilateral trade-targeting a tenfold increase over the next decade. In FY 2024-25, trade between the two countries stood at USD 1.29 billion, comprising USD 711.08 million in Indian exports and USD 587.15 million in imports.

A key sticking point in the negotiations remains New Zealand's demand for greater access to India's dairy market-a highly sensitive area for India.

To date, India has not opened its dairy sector in any of its trade agreements, including the recently concluded FTA with the United Kingdom.

While New Zealand is seeking concessions, India has indicated it may consider limited imports of value-added dairy products but remains opposed to allowing raw dairy imports.

Tariff reductions on New Zealand's meat and wine exports are also contentious, with India showing reluctance to make significant concessions in these areas.

Conversely, India is seeking improved mobility for its skilled professionals and greater market access for its IT and services sectors.

However, New Zealand has so far resisted India's proposal to grant work opportunities akin to those extended to Australia and China.

India's major merchandise exports to New Zealand include textiles, pharmaceuticals, refined petroleum, agricultural machinery, electronics, automobiles, iron and steel, seafood (notably shrimp), and basmati rice.

In return, New Zealand exports a range of agricultural and mineral products to India, including apples, kiwifruit, dairy ingredients, lamb and mutton, wool, coking coal, timber, and scrap metals.

In the services sector, India exported USD 214.1 million worth of services to New Zealand in FY24, while imports stood at USD 456.5 million.

Indian service exports are dominated by IT and software services-delivered by firms such as Infosys and HCL-telecommunications support, healthcare services (including telemedicine and medical tourism), and financial technology solutions.

New Zealand's services exports to India are led by education and tourism. Thousands of Indian students pursue higher education in New Zealand each year, contributing significantly to its education sector.

(KNN Bureau)

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